Spot Ethereum ETFs post 113 million in costs on the second day of launch

Spot Ethereum ETFs post 113 million in costs on the second day of launch


US-based Spot Ether exchange-traded funds (ETFs) returned $113.3 million in net inflows in their second day of trading, mainly due to heavy bleeding from Greyscale Ethereum Trust.

Seven of the eight “newborn” spot ether (ETH) ETFs posted net gains on day two of trading. Fidelity Ethereum Fund (FETH) and Bitwise Ethereum ETF (BITW) led the way with the largest net income, posting $74.5 million and $29.6 million, respectively.

BlackRock's iShares Ethereum Trust (ETHA), which posted the strongest exit of the group on July 23, raised just $17.4 million from investors on July 24.

Ether ETF posted net negative flows on day two of trading. Source: FarSide Investors

The new ETFs were weighed down by another heavy day of selling from the recently converted Grayscale Ethereum Trust (ETHE) as it bled $326.9 million in outflows.

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In the year Launched by Grayscale in 2017, ETHE allows institutional investors to buy ETH. However, it imposed a six-month lock-in period on all investments. Investors have been able to easily sell their ETH since the switch to the Spot Ether Fund on July 22.

In the two days since the switch, ETHE has seen $811 million in outflows, meaning existing ETHE investors sold more than 9% of the fund's holdings.

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The recent performance of the Ether ETF is not unprecedented.

Spot Bitcoin (BTC) ETFs have posted net inflows for six of their first 10 trading days, with the Greyscale Bitcoin Trust ETF largely to blame.

ETH is trading at $3,172 at the time of publication, up 6.8% in the last 24 hours and down 7.4% for the week, according to TradingView data.

Ether's price action came amid a broad selloff in the stock market, with the S&P 500 down 2.3% on July 24.

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ETF prices have fallen sharply. Source: TradingView

In particular, ETH fell significantly compared to Bitcoin, which fell only 2.6%. This is in line with Caico analyst Will Cai's prediction that the price of ETH could be “worrisome” for future flows following the launch of the ETF.

Greyscale's ETHE traded $484.4 million on its first day of trading as a spot ether ETF. However, strong revenue across the other eight products pushed total net revenue to $106.6 million.

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